Safestyle close to 10% market share – conservatory move takes nearly £1million
22nd March 2016

Safestyle has grown market share for the 11th year in succession to 9.46% in 2015 with a record 60,134 installations, revenue up 9.5% to £148.9million, gross profit up by 9.7% to £54.5million and average order value up 5.6% to £2,963. In addition, the company announced that its move into conservatory upgrades added £0.9million to its revenue in the first nine months.

Behind the figures, the company’s original proposition of doorstep canvassing fell to less than half by value for the first time, as more conventional media and internet marketing came to the fore, accounting for nearly 60,000 leads during the year.

SEO Steve Birmingham explained: “Leads generated from our digital activities and direct response channels accounted for 37% of all business in 2015, a significant increase on the 31% in 2014. Lead generation from door canvassing remains an important part of the marketing mix and, although the value of business from this source remained constant in 2015, it reduced to under 50% as a proportion of the total. Our continuing increased investment in direct and digital marketing will be a key factor in gaining market share and reducing average lead generation costs.”

The company adds that marketing costs were the biggest contributor to an increase in operating expenses, with an additional £1.7 million being invested in TV and online advertising.

Expansion in the south continued, with new branches opened in Watford and Guildford plus a 12th installation depot, in Stevenage. It also opened branches in Newcastle and Stockport to fill-in underrepresented areas and it plans to further expand the branch network as well as expanding its manufacturing facility in Wombwell, South Yorkshire.

The CEO continued: “From 1 July 2015 we enhanced our consumer finance offer which resulted in a significant step up in order intake. This growth came with additional subsidy costs which we have sought to recover with an increase in our prices from 1 January 2016. Early indications are that despite this price increase we expect to maintain our market leading price and value proposition.”

Order intake from last April’s move into conservatory upgrades has continued to gain momentum, suggesting it will comfortably meet its 2016 target of 450 units. For the nine months of 2015, Safestyle carried out 108 such installations, adding £0.9million to its revenue.

Steve Birmingham concluded: The Group again delivered record results in 2015 and it is our intention to continue our successful progress in 2016. Early indications for the first two months of 2016 are very encouraging and we have started the year well.”